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Facts
The assessee filed a return of income for AY 2012-13. The case was reopened due to unexplained cash deposits of Rs. 45,42,1000/- in a savings account, which were treated as unexplained money under Section 69A of the Act. Ex-parte assessment orders were passed and confirmed by the CIT(A).
Held
The Tribunal restored both appeals to the file of the Assessing Officer for denovo assessment. This was done to provide the assessee with an opportunity to present their case and evidence, keeping in mind the principles of natural justice, despite the assessee's past defaults.
Key Issues
Whether the assessee was denied a proper opportunity of being heard before the lower authorities, and if so, whether the case should be remanded for denovo assessment to uphold principles of natural justice.
Sections Cited
69A, 147, 144B
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI JAGADISH
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member): The captioned appeals filed by the assessee are directed against the orders of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] of even date 28.12.2023 for Assessment Year 2012-13 in quantum appeal and 2012-13 in penalty appeal. 2. Brief facts are as under: The assessee has filed the return of income for AY 2012-13 on 23.09.2013 at a total income of Rs.2,19,320/-. The case of the assessee reopened for & 87/Chny/2025 :- 2 -:
the reason that the assessee had made cash deposits of Rs.45,42,1000/- in the savingbank account and the same was not offered for taxation in his return of income. In view of the above facts, an amount of Rs.45,42,1000/- is treated and assessed as unexplained money u/s 69A of the Act.
Assessee further challenged the both ex-parte orders of assessment passed u/s147 r.w.s. 144B of the Act before the ld.CIT(A) who proceeded ex-parte and confirmed the orders of the AO on merits. Aggrieved, assessee is in appeal before us.
Before us, the ld. Counsel for assessee submitted that the CIT(A) has sent the notices however, the assessee missed to received notices hence the appeals were not prosecuted before the ld. CIT(A). Therefore, he prayed that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his explanation regarding cash deposits in savings account. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in these cases and prayed for dismissal of the both appeals.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices for the reasons stated above. We also note that even before AO the order is ex-parte. Accordingly, the impugned orders are set aside and the both appeals are restored back to the file of Ld. AO for denovo assessment after affording proper opportunity of hearing to the assessee subject to cost of Rs.5,000/- each appeal which shall be deposited by the assessee within 30 days from the date of receipt of these orders to ‘Tamil Nadu & 87/Chny/2025 :- 3 -:
State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposits in both cases will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessment hearings after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents regarding cash deposits in saving bank account, if any, forthwith without any fail, failing which ld. AO shall be at liberty to proceed with the both assessment hearings as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute these assessment proceedings diligently. All the legal issues are kept open before the ld.AO.
In the result, both the appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 25th March 2025 at Chennai.